diff --git a/mcp/src/tools/labels.ts b/mcp/src/tools/labels.ts
index 51aac496..92275f30 100644
--- a/mcp/src/tools/labels.ts
+++ b/mcp/src/tools/labels.ts
@@ -10,6 +10,20 @@ import {
 } from '../api-client.js'
 import { errorResponse, escapeMarkdown, safeTableCell, textResponse } from '../utils.js'
 
+/**
+ * Find a label by name using tiered matching: exact match first, then substring fallback.
+ */
+function findLabelByName<T extends { name: string }>(
+  labels: T[],
+  labelName: string,
+): T | undefined {
+  if (!labelName.trim()) return undefined
+  const nameLower = labelName.toLowerCase()
+  const exactMatch = labels.find((l) => l.name.toLowerCase() === nameLower)
+  if (exactMatch) return exactMatch
+  return labels.find((l) => l.name.toLowerCase().includes(nameLower))
+}
+
 /**
  * Format a list of labels for display
  */
@@ -94,9 +108,7 @@ export function registerLabelTools(server: McpServer) {
         return errorResponse(listResult.error)
       }
 
-      const label = listResult.data?.find((l) =>
-        l.name.toLowerCase().includes(labelName.toLowerCase()),
-      )
+      const label = listResult.data ? findLabelByName(listResult.data, labelName) : undefined
 
       if (!label) {
         return errorResponse(`Label not found: ${labelName}`)
@@ -145,9 +157,7 @@ export function registerLabelTools(server: McpServer) {
         return errorResponse(listResult.error)
       }
 
-      const label = listResult.data?.find((l) =>
-        l.name.toLowerCase().includes(labelName.toLowerCase()),
-      )
+      const label = listResult.data ? findLabelByName(listResult.data, labelName) : undefined
 
       if (!label) {
         return errorResponse(`Label not found: ${labelName}`)
@@ -188,9 +198,7 @@ export function registerLabelTools(server: McpServer) {
         return errorResponse(labelsResult.error)
       }
 
-      const label = labelsResult.data?.find((l) =>
-        l.name.toLowerCase().includes(labelName.toLowerCase()),
-      )
+      const label = labelsResult.data ? findLabelByName(labelsResult.data, labelName) : undefined
 
       if (!label) {
         return errorResponse(`Label not found: ${labelName}`)
@@ -257,9 +265,7 @@ export function registerLabelTools(server: McpServer) {
       }
 
       // Find the label on the ticket
-      const label = ticket.labels.find((l) =>
-        l.name.toLowerCase().includes(labelName.toLowerCase()),
-      )
+      const label = findLabelByName(ticket.labels, labelName)
 
       if (!label) {
         return errorResponse(